Holcim Sri Lanka will invest US$20m to develop grinding capacity at the Ruhuna plant in Galle to meet the future demand in emerging markets. Vice president marketing and sales Viraj Gunasekera said that the grinding capacity will be increased by 600,000t once the work is completed in 2013. At present the production stands at 400,000tpa.

He said the hotel chains in the north and east has just started work and there will be a rapid growth of demand for cement in the next 2-3 years. The GDP growth of the country is expected to remain at 6-7% and demand for cement will be little higher.

Another packing plant also will be set up in Trincomalee, in the northeast of the country, with an investment of US$4-5m next year.